Profile picture for user9431095

I had an expired listing and have been approached by a buyers agent

He wants me to sign a sellers contract with 6% and with a time limit of 10 days. Should i contact my previous listing agent ? and is 6% reasonable ?
  • January 01 2013 - Upper East Side
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Answers (9)

Profile picture for Julie Miranda
If the listing expired and your house didn't sell you might want to give the opportunity to other agents,10 days doesn't sound very realistic to get a listing if it was me but if he has the buyer sounds good to give him a try, I wouldn't like it if he was lying just to get the listing and then tries to look for a buyer after you sign It wouldn't be a good start if he was dishonest so ask him straight out and tell him you might give him a chance if he's honest at the end he might be motivated and finds a buyer who knows but results count, all agents have different ways to market properties and I personally think that if something its not working or didn't work in the past its time for a change or try something new. The compensation sounds about right but can be negotiated however keep in mind that other sellers might be offering good compensation to motivate agents to show their house and sell fast so just keep it competitive I ould say 6% sounds reasonable 3% for agent representing seller and 3% for agent representing buyer, if he double ends good for him.
  • May 20 2013
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6% is high based on the fact that he is only wanting to represent a buyer. If he represents both you and the buyer then the 6% is reasonable. If he is interested in bringing you a specific buyer, then you can sign a form stating you will pay him a percentage as a buyer's agent with the buyer named on the agrement. You do not have to LIST with him. However, if you are not familiar with real estate laws this may put you in a bad position.
  • January 02 2013
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That is a great question and there is no "one perfect answer".

I tell my clients if another Realtor actually does have a bonafide buyer - that they should only commit to doing a "one party showing agreeement" in which they need to actually name their buyer so they don't just go out and market it trying to find one and letting you down again!

Compensation is always negotiable.  Personally, if I already have the buyer and know I won't be having to pay to advertise, do open houses, deal with other agents, etc., I might offer a discounted fee.

Regarding contacting your previous agent, that also depends on your relationship.  Since the "buyer's agent" obviously found out about your listing expiring due to the initial efforts of your listing, I would recommend that list your home at the same commission rate you had agreed to previously and offer 25% of the listing side commission to the initial agent as a professional courtesy.

If your initial agent did what they were supposed to and it was just the market that kept your home from selling, I would say stick with your first agent. If they failed to deliver appropriate marketing / communication / feedback during the listing period I would request proposals from other full time agents in your area and select the most qualified one with the best reputation for getting the job done.

Hope that helps!
Jim Paulson, CRS, GRI, EPRO, SRES
Owner / Broker - Progressive Realty Corporation
  • January 02 2013
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You should absolutely contact your previous agent! 
  • January 02 2013
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Well that's very interesting. I assume he only needs Ten Days because he has an all-cash buyer for your property. Yes! contact your previous Realtor and let the two of them sort out the details.
  • January 02 2013
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Look at it from a logical aspect. Are you preparing to negotiate the price on your home?  Because listings are at an all time low many agents like myself are offering discounts on Listing Contracts.  It seems to be another phase the market is going through.  The price of advertising has dropped due to the success of the Internet.  Most agents do not pay for printed advertising any longer.  It seems fair to pass the savings along to the Seller.  
  • January 02 2013
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Profile picture for Ofe Polack
Once the property expires agents will be contacting you willing to list the home.  Obviously this agent must have a buyer in mind.  It is perfectly acceptable to do that.  You have nothing to lose for 10 days, after all the other listing agent, did not bring you a sale, and most likely that is the same commission you were willing to pay before.
  • January 02 2013
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Profile picture for Brian French
You certainly have some power to negotiate - if you told him to contact your previous agent - he would then only get 3%.  Other than that, his arrangement seems in order
  • January 02 2013
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If your current listing has expired, it is open for other agents to contact you. It sounds like the agent that contacted you has a specific buyer or two in mind, and that is why he only wants a ten day listing to get an accepted offer to you.

It is up to you whether to contact your previous agent or not. It would be the polite thing to do, but you are not obligated to. 6% was probably the commission in your previous contract (3% to lising agent and 3% to selling agent). Because the agent that wants the ten day contract has a buyer in mind, you might be able to offer him 5% total commission.
  • January 01 2013
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